MTN global pitch gains momentum
In 2016, MTN, Africa’s telecom giant requested global network agencies with tentacles across African markets to apply for its business. It was arguably the first time a multinational brand will be committing the whole of its marketing and communications requirements to a range of agencies in a single pitch.
Four years after the epochal global pitch, creative multinational agencies have been out, since April this year, spiritedly pitching the business. The outcome of the pitch will be known by the end of the year, while the winners will commence work early next year, according to those with knowledge of the process.
It was also revealed that the creative phase of the pitch has taken place, while the commercial phase is ongoing. “In Nigeria, there are very healthy and robust relationships going on between agencies and the local MTN Group,” an insider source hinted, adding, however, that “the entire pitch process will culminate in a decision of the global effort”.
“The decision is not to be based on the performance of the local agencies,” the source hinted.
It would be recalled that MTN followed the same method four years ago when the global lucrative account called for pitch. WPP, Omnicom Group, Publicis, Dentsu Aegis Network, Havas and Interpublic Group were all invited to participate. In early 2017, it was announced that the Omnicom Group was awarded as integrated global agency, and in South Africa, the account is led by TBWA\Hunt Lascaris.
Currently, Omnicom Group is MTN’s agency partner and is fully participating in the pitch. The source hinted that, so far, “Omnicom has put forward a very good fight in the ongoing pitch”.
Since 2017, the choice of Omnicom Group includes the areas of brand, media, digital, public relations, internal communication and sponsorships, across MTN’s functional areas of marketing, consumer, enterprise business, digital services, corporate affairs, human resources and investor relations at a group level, as well as the company’s operations in 22 markets.
However, in Nigeria, MTN extended a retainer to a member of the Omnicom network, DDB Lagos. Other network members such as TBWA and Yellow Brick Road were also appointed as partner creative agencies on building the MTN business.
MTN operates in several African countries, including South Africa, Nigeria, Ghana, Uganda, Zambia, Rwanda, South Sudan, Botswana (joint venture-equity), eSwatini (joint venture-equity), Cameroon, Ivory Coast, Benin, Congo-Brazzaville, Liberia, Guinea Conakry and Guinea Bissau. The telco giant also operates across the Middle East and North Africa region, including Iran (joint venture-equity), Syria, Yemen, and Afghanistan.
Meanwhile, MTN recently announced the divestment of its investments in the Middle East, in order to strategically focus on the African continent, citing the volatile nature of the operating environments as part of the reason for the divestiture. The former MTN Chief Executive Officer, Rob Shuter, noted that the Middle East environment was becoming increasingly complex and contributed less to the group’s earnings.
The group disclosed that it was in advanced talks to sell its stake in MTN Syria and MTN Irancell, including other Middle East investments, stating that it would be left with 17 subsidiaries in Africa, after pulling out its total portfolio from the Middle East.
It stands to reason that any agency that wins the MTN’s global pitch in progress will be managing the 17 subsidiaries in Africa going forward.
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